Uncovered Fund & Monex Ventures Launch USD 20m Africa Fund
A new partnership between specialist venture capital firm Uncovered Fund and corporate VC Monex Ventures highlights increasing Japanese investment in Africa's technology landscape. The two have launched the "Uncovered Monex Africa Investment Partnership," a ¥3 billion (around $20 million) fund targeting early-stage startups in Africa and the MENA region.
The fund will provide capital to companies developing the continent's foundational digital and physical infrastructure, concentrating on four primary sectors: finance, distribution, mobility, and sustainability.
Despite a recent downturn in global venture funding that has also affected Africa, this initiative is founded on a belief in the continent's strong long-term demographic and digital growth prospects. Projections show Africa’s population reaching 2.5 billion by 2050, with its base of mobile internet users set to grow from 500 million to over 1.1 billion by 2030.
Beyond financial investment, the fund’s central mission is to create a formal connection between its portfolio companies and established Japanese corporations seeking new avenues for growth outside their domestic market. A source familiar with the plan described it as "strategic matchmaking," designed to deliver both strong financial returns and direct access to innovation and new markets for its investors.
The investment focus is on four key pillars where technology can address major infrastructure needs:
- Finance: Targeting fintech solutions like mobile payments and B2B financial platforms for SMEs to serve the large unbanked population, with the goal of later connecting them to Japanese financial institutions.
- Distribution & Logistics: Backing startups in e-commerce and logistics to solve urban delivery challenges, creating potential distribution networks for Japanese products.
- Mobility: Investing in platforms for the used car market and the emerging electric vehicle sector, where portfolio companies could partner with Japanese auto and battery technology firms.
- Sustainability: Focusing on AgriTech to boost agricultural productivity on the continent's vast arable land, as well as on carbon credit initiatives that are attracting international interest.
This collaboration leverages Uncovered Fund's regional expertise and network with Monex Ventures' extensive connections within corporate Japan. While entering a competitive market with established players like Partech Africa and TLcom Capital, the fund's modest $20 million size indicates a focused, hands-on strategy aimed at seed and pre-Series A funding rounds. The fund's ultimate success will be measured by its ability to achieve top-tier returns while forging tangible business opportunities for its Japanese corporate investors.
Norbert Gehrke
